Insurance regulator pitches for differential FDI caps

PUNE/MUMBAI: Differential caps for Foreign Direct Investment (FDI) in the insurance sector could be on the agenda if the government and the Left parties are able to arrive at an agreement.

As part of the comprehensive changes to the insurance law, IRDA is understood to have mooted varying the percentage of foreign participation in the paid-up capital of an Indian insurance company depending on the category of the company.

This means that a standalone health insurance company could have an FDI cap that is different from say, a general insurance firm.

The insurance regulator is also reckoned to have made out a case to the government for varying the capital requirements for different segments of the insurance industry.